HD Hyundai Construction Equipment (267270) Q2 2025 earnings summary

Executive summary

• Sales increased 13% year-over-year in 2Q25, led by strong demand in emerging markets and a rebound in China.

• Revenue for H1 2025 was KRW 1,874.5 billion, down from KRW 3,438.1 billion in FY2024, with operating income at KRW 81.7 billion and net income at KRW 26.3 billion.

• Operating profit declined 32% year-over-year due to one-time restructuring costs; excluding these, operating profit rose 5%.

• Net profit dropped 98% year-over-year, impacted by non-operating losses and foreign exchange effects.

• The company announced a merger with HD Hyundai Infracore, effective January 1, 2026, to maximize long-term shareholder value.

Financial highlights

• 2Q25 sales reached KRW 967.7bn, up 13.4% year-over-year and 6.7% sequentially.

• H1 2025 revenue: KRW 1,874.5 billion (down from KRW 3,438.1 billion in FY2024).

• Operating profit was KRW 40.0bn, down 31.6% year-over-year; operating margin fell to 4.1%.

• Net profit was KRW 0.6bn, a 98% year-over-year decrease.

• Gross margin: 19.8% for H1 2025.

Outlook and guidance

• North America and Europe show signs of demand recovery, with further growth expected in H2 2025.

• The merger with HD Hyundai Infracore is expected to create synergies and strengthen global competitiveness.

• The global construction equipment market is forecasted to rebound in 2026 after a soft landing in 2025.

• Emerging markets, especially Africa, Middle East, and Indonesia, are expected to drive continued sales growth.

• China’s moderate demand growth is supported by expansionary fiscal policy and increased exports.